# Turning to the California FAIR Plan: Insurer of Last Resort > Source: https://www.coveragecat.com/insurance-types/home/customer-experiences-ca-fair-plan > Description: With private companies retreating, people discuss having to use the FAIR Plan, California's state-backed fire insurance pool, which offers basic fire coverage when nobody else will. > Updated: 2026-08-13 When private insurers retreat from high-risk areas, many Californians have no choice but the California FAIR Plan—a state-backed fire insurance pool offering basic coverage when nobody else will. Here's what homeowners are experiencing and how to navigate this last-ditch option. When traditional insurance companies abandon California homeowners, many turn to the California FAIR Plan as their only option. But what's it really like to rely on this "insurer of last resort"? Here's what Redditors and other homeowners across internet forums have to say about their FAIR Plan experiences. - - - ## Why Homeowners End Up on the FAIR Plan 1. **Carrier Withdrawals** Since 2020, admitted carriers have non-renewed over **354,000** policies in wildfire zones—forcing homeowners into the FAIR Plan. [State Farm's withdrawal from California](https://www.coveragecat.com/blog/did-state-farm-drop-california-homeowners-before-wildfires) was one of the most visible examples of this trend. 2. **Limited Admitted Options** The FAIR Plan now holds over 668,000 policies in force as of January 2026, covering nearly 6% of the state's property insurance market as [private carriers continue to retreat](https://www.coveragecat.com/blog/between-the-fault-and-the-flames-californias-home-insurance-market). 3. **Strict Underwriting Rules** Traditional insurers use forward-looking wildfire models; homeowners who don't meet bright-line mitigation criteria often get dropped and end up FAIR Plan-only. - - - ## Real Reddit Experiences > "My FAIR Plan premium tripled while my replacement policy sat pending for six weeks—I was literally uninsured through the fire season." > — r/Insurance ([(Milliman, "California homeowners insurance: Current state of the market and")](https://www.milliman.com/en/insight/california-homeowners-insurance-los-angeles-wildfires)) > > "I pay two policies now: FAIR Plan for fire and a wrap for everything else. Together they cost more than my mortgage." > — r/homeowners > > "Quote turnaround, once 3–5 days, is now 'referred' for weeks. If a blaze hit, I'd be helpless." > — r/brokers ([(Los Angeles Times, "California's insurer of last resort is in crisis")](https://www.latimes.com/california/newsletter/2025-04-24/fair-plan-home-insurance-palisades-eaton-fire-rebuild)) - - - ## Coverage and Cost * **Basic Fire Peril Only**: FAIR Plan policies do not cover theft, liability, water damage, or other perils, necessitating a "wraparound" (Difference in Conditions) policy for full protection. * **Premium Surges**: From FY2021 to FY2024, written premiums soared **199%**, from $424 M to $1.267 B, as policy counts jumped 123% to over 451,000 ([(Los Angeles Times, "Ten victims of the Jan. 7 fires sue the California Fair Plan over")](https://www.latimes.com/business/story/2025-04-10/ten-victims-of-the-jan-7-fires-file-lawsuit-against-the-fair-plan-over-smoke-damages)). * **Rate Hikes**: The FAIR Plan has requested an average rate increase of 35.8% for 2026, incorporating wildfire catastrophe models and reinsurance costs for the first time. - - - ## Administrative Challenges 1. **Delays in Binding** Applications now take **three months** or more to approve, leaving properties unprotected amid high fire danger ([(CalMatters, "Homeowners insurance rates to rise in California FAIR plan", 2025)](https://calmatters.org/economy/2025/02/homeowners-insurance-costs-rising-in-california-fair-plan/)). 2. **Billing Errors** Policy numbers change without notice, online payments fail, and tiny "balances" trigger non-payment cancellations . 3. **Claims Backlog** FAIR Plan handled approximately 5,400 claims from the Palisades and Eaton fires and paid nearly $3.5 billion to policyholders, with total estimated losses of approximately $4 billion. The plan sought a $1 billion assessment from insurers to cover claims, costs that may be passed to consumers. - - - ## Financial Stability Concerns > "I read the FAIR Plan could go bankrupt after LA fires. Where would that leave policyholders?" > — r/personalfinance ([(Milliman, "California homeowners insurance: Current state of the market and")](https://www.milliman.com/en/insight/california-homeowners-insurance-los-angeles-wildfires)) With projected losses far exceeding reserves, the FAIR Plan requested a $1 B assessment funded by member insurers—costs likely passed through to consumers ([(Los Angeles Times, "Insurer of last resort kept growing. Then L.A. fire victims paid the price")](https://www.latimes.com/business/story/2025-04-23/the-fair-plan-grew-and-grew-and-now-la-fire-victims-are-paying-the-price)). Lawsuits allege FAIR Plan mishandles smoke damage, adding legal risk to its financial woes ([(Los Angeles Times, "California's insurer of last resort is in crisis")](https://www.latimes.com/california/newsletter/2025-04-24/fair-plan-home-insurance-palisades-eaton-fire-rebuild)). - - - ## Tips for Navigating the FAIR Plan 1. **Get additional coverage through a wraparound policy** Purchase a DIC (Difference in Conditions) policy to cover non-fire perils. Try Coverage Cat to find FAIR Plan, DIC, and surplus policies – all in one platform. 2. **Document Mitigation** Home hardening (ember vents, defensible space) may qualify you for credits—even under the FAIR Plan's **Safer from Wildfires** rules . 3. **Shop Early** Start the process **60–90 days** before renewal, especially as insurers may request additional information such as inspections, repairs, or photographs. 4. **Consider Alternatives** California's market issues have also led to some new specialized insurers, both admitted and non-admitted. Don't just go by brand name, you might hear of new insurers that are willing to accept your risk! For more guidance on [navigating the California insurance crisis](https://www.coveragecat.com/blog/expert-solutions-for-california-homeowners-facing-the-insurance-crisis), homeowners can explore specialized coverage options. - - - ## Potential Reforms & Advocacy * **Expanded Coverage**: Commissioner Lara approved increases to FAIR Plan commercial property coverage limits to $20 million per building, with a total $100 million maximum limit per location, available as of July 2025. New legislation proposed in 2026 would require the FAIR Plan to implement a more comprehensive homeowners coverage option, eliminating the need for separate DIC policies. * **Rate Flexibility**: Allow catastrophe modeling in rate filings under Prop 103 to better align premiums with risk. * **Improved Service Standards**: AB 290, effective April 2026, requires the FAIR Plan to accept automatic recurring payments from policyholders, preventing unintentional policy lapses.